ROAS Calculator: Calculate Your Return on Ad Spend
Calculate your Return on Ad Spend (ROAS) instantly. Enter your revenue and ad spend to measure how effectively your advertising generates revenue.
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What is ROAS?
Return on Ad Spend (ROAS) measures the revenue generated for every dollar spent on advertising. It's a crucial metric for evaluating the effectiveness of your ad campaigns.
ROAS Formula
ROAS = Revenue from Ads ÷ Ad SpendROAS Benchmarks by Industry
Acceptable ROAS varies by margin and sector:
- E-commerce: 4:1 ($4 revenue per $1 spent) is considered good
- SaaS/Subscriptions: 3:1 is acceptable due to recurring revenue
- Luxury/High-ticket: 2:1 can be sufficient with high margins
- Low margin: 8:1+ required to stay profitable
Questions Fréquentes
What is a good ROAS?
A good ROAS depends on your margin. Generally, 4:1 (400%) is considered good. If your margin is 25%, you need at least 4:1 to be profitable.
ROAS vs ROI: What's the difference?
ROAS only measures return on ad spend. ROI accounts for all costs (product, operations, etc.). A 4:1 ROAS doesn't mean 300% ROI.
How can I improve my ROAS?
Optimize targeting, test creatives, improve landing pages, exclude non-performing audiences, and increase average order value.
What minimum ROAS should I target?
Minimum ROAS = 1 ÷ Margin. With 25% margin, target at least 4:1. With 50% margin, 2:1 breaks even.
Does ROAS include all sales?
ROAS only counts sales attributed to ads. Organic sales, email, or returning customers are not included.
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